Spirit Energy 76 triples exploratory discoveries

Sugar Land, Texas, June 1, 1998 -- Spirit Energy 76, Unocal Corporation's Lower 48 U.S. exploration and production unit, today announced it has made 26 new oil and gas discoveries both onshore and in the continental shelf area since October 1997. This is more than triple the number of discoveries for the first nine months of 1997.

Spirit Energy's new onshore and shelf exploration strategy began paying off in the fourth quarter 1997. The program emphasizes quick cycle time projects that are frequently tied back to Spirit's extensive Gulf of Mexico asset base. The strategy is designed to have a rapid impact on Spirit production levels and to provide the "transition" production growth necessary to bridge to Spirit's long-term growth program in the deepwater Gulf of Mexico.

Twenty-four of the 26 discoveries are expected to be producing by the third quarter 1998. Spirit has achieved an exploration success rate of 54 percent since October 1997.

Spirit's exploration strategy is also designed to focus on reserve replacement. In the first quarter 1998, Spirit Energy estimates it replaced about 104 percent of production, up from an average of 44 percent over the last three years.

Spirit Energy 76 has net production of about 180,000 BOE per day and operates 300 offshore platforms with 2,700 active wells in 355 fields in the Gulf of Mexico region. The unit employs approximately 1,300 people.

Highlights of Recent Discoveries

Teton (West Cameron 304/305)

4Q 1997 discovery

Spirit Energy 76 is operator; 100% working interest

Directionally drilled well encountered 63 feet of gas pay (true vertical) in two zones between 7,500 and 9,300 feet

Brought on production in May 1998 and is currently ramping up to an expected rate of approximately 20-25 mmcfd and 300 barrels of condensate per day (BCPD)

Spirit acquired the prospect at the OCS central Gulf of Mexico lease sale held in March 1997

East Breaks 158 A14ST

4Q 1997 discovery

Spirit Energy 76 is operator; 67% working interest

Extended reach well encountered 142 feet (true vertical) of oil and gas pay in three zones between 5,000 and 6,700 feet

Current gross production rate 9.5 mmcfd

West Cameron 279 B5ST

1Q 1998 discovery

Spirit Energy 76 is operator; 100% working interest

Well encountered 78 feet of gas pay (true vertical) at a vertical depth of 13,911 feet

Well was quickly brought on production in April 1998; currently producing 26 mmcfd